The short description of a transaction written at the end of a journal entry is known as _______________.
Summary
Narration
Memo
Info
Correct Answer :
B. Narration
Related Questions
According to the Concept of Conservatism, an accountant should
Recognize all losses and anticipate no gains
Recognize all gains and anticipate no losses
Recognize and anticipate both gains and losses
Both (b) and (c)
Wages and Salaries is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
Mr.Customer purchased goods from Mr.Seller on credit. This is a/an
Event
Transaction
Both (a) and (b)
None of the above
All credit sales are recorded in
Sales Day Book
Sales Credit Book
Sales Day Account
Sales Day Register
Goodwill is not a fictitious asset.
True
False
Choose the odd one out
Wages
Stationery
Sales
Furniture
An expense incurred to keep the machine in working condition is a capital expenditure.
True
False
Contingent liability is an ascertained liability but its amount and due date are indeterminate.
True
False
The balance in the Cash Book represents net income.
True
False
Which of the following events is not a transaction?
Mr. Employer paid salary of Rs.9,000 to Mr. Employee.
Rahul sold his bicycle to Rohan for Rs.600.
Abhijeet gifted a book, priced at Rs.800, to Amit.
None of the above.
The cost of a machine is Rs.5,70,000. Its scrap value is Rs.25,000 and useful life is 10 years. The depreciation amount under Straight Line Method is
Rs.57,000
Rs.59,500
Rs.54,500
Rs.50,000
Any type of error affects the agreement of Trial Balance.
True
False
WIP stands for
Working Progress
What-in-Progress
Work-in-Progress
Works-in-Progress
HUF stands for
Hindu United Family
HIndi Undivided Family
Hindu Undivided Family
Hindu Uniform Family
The cost of a machine is Rs.6,00,000. The rate of depreciation is 10%. The depreciation for the 3rd year, on diminishing balance method, is
Rs.60,000
Rs.54,000
Rs.48,600
Rs.43,740
The life span of a company is dependent on the life span of the
Owner(s) of the company
Promoter of the company
Managing Director of the company
None of the above
Transfer to General Reserve is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
Trial Balance is prepared after the preparation of Profit and Loss Account.
True
False
Business ventures, which are started for a predefined period, are known as _____________ventures
Joint
Terminal
Treminable
Limited Period
Depreciation cannot be provided in case of loss, in a financial year.
True
False
E. & O.E.
Errors & Omissions Expected
Error & Omission Expected
Errors & Omissions Entered
Errors & Omissions Excepted
The account which can never have a credit balance is
Bank
Cash
Debtor
Creditor
Capital of the business is an example of external liability.
True
False
Providing depreciation ensures sufficient cash for asset replacement.
True
False
Depreciation is not charged on _______________.
New assets
Land
Building
None of the above
WDV stands for
Written Down Valuation
Write Down Value
Written Down Value
Writing Down Value
Expenditure, which result in acquisition of permanent assets, is a capital expenditure.
True
False
Which of the following equation(s) is(are) true
Assets = Liabilities + Capital
Assets - Capital = Liabilities
Both (a) and (b)
None of the above
All events are transactions but all transactions are not events.
True
False
If the totals of debit and credit columns of a Trial Balance are equal, it implies correctness of books of accounts.
True
False